KIRO host John Curley discussed the impact of the $26 minimum wage law that went into effect for gig workers in Seattle, where major companies like Uber Eats and DoorDash have had to implement new fees to balance out the extra costs for workers, thus raising prices too high for many consumers.
“What [Seattle] did is say, ‘Well, you got to pay them this amount of money.’ So then Uber Eats goes, ‘Well, then how do we pay them? Because we’re not making that much on this sort of thing. Three to four cents is the margin on every dollar,’ Curley said on “The John Curley Show” on KIRO Newsradio. “The state or city comes in and says, ‘You have to pay these people a certain amount of money.’ So, Uber throws a $5 fee on top, so the price keeps going up.
“Then what happens? Well, of course, what happens is then the number of people using Uber Eats for delivery goes down, the businesses lose the delivery of the product, and then the people who are supposed to deliver this stuff, they lose money as well,” he continued. “The idea is that a third party decides you have to pay this person a certain amount of money, and then what do you know, when the price of something goes up, people buy less of it.”…